Would Anaheim spend city funds to get Kings?
By ERIC CARPENTER
THE ORANGE COUNTY REGISTER
Published: March 21, 2011 Updated: 7:46 p.m.
ANAHEIM – While evidence is mounting that Anaheim officials are indeed trying to help get the Sacramento Kings to move here, word that the City Council is considering approving funding to upgrade the Honda Center has confused and angered some residents.
"Aren't we already facing a huge deficit?" resident Nathan James asked in an e-mail. "What sense does it make to spend more money, especially when this area already has two pro (basketball) teams?"
The City Council agenda for Tuesday's meeting gives few details about what upgrades will be considered and whether it is even related to the possible Kings move. City officials have declined to discuss specifics.
But if the Honda Center were to be the home base for any NBA team, the city's head of sports and entertainment at the time, Greg Smith, said in 2008 that it would require new locker rooms, a sports-training facility and a practice court.
All that would likely cost millions. And, yes, the city is facing a major deficit – estimated at $10 million a year. And budget reserves have plummeted from $45 million in 2007 to $11 million this year.
Though Tuesday's agenda makes no mention of how the upgrades would be funded, a public-hearing notice in The Register indicates that the city will consider issuing bonds to pay for the improvements to the city-owned arena.
"In all considerations, the city's priority is to protect taxpayers and the city's general fund, minimizing financial and operational risk to (Anaheim)," Anaheim spokeswoman Ruth Ruiz said. She declined to give more details.
Any financing can't increase residents' taxes without a public vote.
Likely, funding would come from private investors and bonds would be paid off with the increased revenues anticipated from the Honda Center, in large part because of the NBA team.
Back in the early 1990s, the city issued bonds to construct the $123 million arena – a debt that was taken on by Ogden, and later by Anaheim Arena Management, the Henry Samueli-owned company that operates the Honda Center and is negotiating to bring the Kings here. Some $36 million in principal is left on that debt.
"Aren't we already facing a huge deficit?" resident Nathan James asked in an e-mail. "What sense does it make to spend more money, especially when this area already has two pro (basketball) teams?"
The City Council agenda for Tuesday's meeting gives few details about what upgrades will be considered and whether it is even related to the possible Kings move. City officials have declined to discuss specifics.
But if the Honda Center were to be the home base for any NBA team, the city's head of sports and entertainment at the time, Greg Smith, said in 2008 that it would require new locker rooms, a sports-training facility and a practice court.
All that would likely cost millions. And, yes, the city is facing a major deficit – estimated at $10 million a year. And budget reserves have plummeted from $45 million in 2007 to $11 million this year.
Though Tuesday's agenda makes no mention of how the upgrades would be funded, a public-hearing notice in The Register indicates that the city will consider issuing bonds to pay for the improvements to the city-owned arena.
"In all considerations, the city's priority is to protect taxpayers and the city's general fund, minimizing financial and operational risk to (Anaheim)," Anaheim spokeswoman Ruth Ruiz said. She declined to give more details.
Any financing can't increase residents' taxes without a public vote.
Likely, funding would come from private investors and bonds would be paid off with the increased revenues anticipated from the Honda Center, in large part because of the NBA team.
Back in the early 1990s, the city issued bonds to construct the $123 million arena – a debt that was taken on by Ogden, and later by Anaheim Arena Management, the Henry Samueli-owned company that operates the Honda Center and is negotiating to bring the Kings here. Some $36 million in principal is left on that debt.
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